Australian Pacific Coal Limited · ASX:AQC
Australian Pacific Coal — Investor Presentation (September 2022)
24 slides from Australian Pacific Coal's investor presentation, Sep 14, 2022
Slide 1: Proposal to re-commission the scalable Dartbrook Thermal Coal Mine
For personal use only Australian Pacific Coal Proposal to re-commission the scalable Dartbrook Thermal Coal Mine, via a recapitalisation Corporate Presentation September 2022 Not for release or distribution in the United States
Slide 2: Disclaimer
For personal use only Disclaimer This presentation (‘the presentation’) has been prepared by Australian Pacific Coal Limited (‘AQC’ or ‘the Company’) in connection with its entitlements offer and is not intended to, and doesn’t, constitute legal, tax or accounting advice or opinion of any particular
Slide 3: Important Information
For personal use only Important Information Marketable Reserves Note The Dartbrook Marketable Coal Reserve of 370Mt is derived from a run of mine Coal Reserve of 470 Mt estimated in accordance with JORC 2012 with a predicted overall yield of 78%. The 370Mt Marketable Coal Reserve is included in the
Slide 4: Key Transaction Summary
Key Transaction Summary Trepang in relation to the Entitlement Offer: For personal use only • Trepang Services Pty Ltd (Trepang) has terminated the purchase agreement1 for Dartbrook • AQC and Trepang have been investigating, and continue to investigate, a transaction structure which would see Trepan
Slide 5: Board and Management
For personal use only Board and Management Company Board and Management Mr David Conry Mr Tony Lalor Mr Craig McPherson Executive Chairman Non-Executive Director Non Executive Director & Company Secretary • David is a highly qualified and experienced • Mr Lalor is a partner at a leading Australian •
Slide 6: Dartbrook Overview
Dartbrook Overview The Dartbrook coal mine is positioned in the NSW Hunter Valley region where previous Longwall underground For personal use only mining operations commenced in 1994, under the previous ownership of Anglo, with production reaching over 5.5Mtpa in 2005. The mine was placed into care
Slide 7: Investment Highlights
For personal use only Investment Highlights Value Infrastructure Product Quality • Currently permitted for a 6Mtpa • Existing infrastructure will support a • High quality coal with calorific value underground operation significant mining operation and quality parameters suitable for • Options exist
Slide 8: Company and Asset Timeline
For personal use only Company and Asset Timeline Acquisition and Study Phases Permit Review and Extension Restart Ready 1H 2017 2018 - 2019 1H 2022 2H 2023 Dartbrook Acquisition Feasibility Studies Dartbrook 5 Year First Coal • Acquired asset from Anglo Extension [INDICATIVE] American and Marubeni •
Slide 9: Robust Market Outlook
Robust Market Outlook Previous underground mining at Dartbrook produced a coal product that was well-accepted in the international marketplace. For personal use only Over a 10-year period, approximately 25Mt of high energy Dartbrook thermal coal product was sold into the Asian market 1. • Significan
Slide 10: Entitlement Offer & Deal Structure
For personal use only Entitlement Offer & Deal Structure A$100 million fully underwritten pro-rata renounceable entitlement offer (‘Offer’) • Eligible shareholders have the opportunity to subscribe for 5.83 shares for every 1 share (5.83:1) held on the Record Date being 7:00pm on Friday, 9th Septemb
Slide 11: Indicative Entitlement Offer Timeline
Indicative Entitlement Offer Timeline Note: All dates and times above are Event Date* (2022) indicative and the Company reserves the For personal use only Announcement of Entitlement Offer, Appendix right to amend any or all of these events, Friday, 2nd September dates and times, or to withdraw the
Slide 12: Transaction Overview
Transaction Overview The capital structure components, both pre and post the transaction, are outlined below: For personal use only 50.5M 294.3M A$117.2M A$88.2M Existing Shares on Issue (SOI) Additional SOI Pro forma MC Pro forma EV 344.8M $0.34 A$71M A$100M Pro forma SOI Issue Price Current Debt P
Slide 13: Proposed Dartbrook Joint Venture
For personal use only Proposed Dartbrook Joint Venture Joint Venture In conjunction with the Entitlement Offer the Company is working towards a binding agreement (current status non-binding) for a proposed joint venture Farm-in arrangement between M Resources Group and AQC. The strategic partnership
Slide 14: Asset Overview
For personal use only Asset Overview 14 Not for release or distribution in the United States
Slide 15: Dartbrook: Hunter Valley Location
For personal use only Dartbrook: Hunter Valley Location Dartbrook is located in the upper Hunter Valley in NSW, Australia. Muswellbrook is the closest major town, approximately 10 km to the southeast. The Dartbrook coal is ideally placed with world-class infrastructure supporting mining operations i
Slide 16: Existing Infrastructure & Land/Water Access
For personal use only Existing Infrastructure & Land/Water Access The Dartbrook mine has existing infrastructure with estimated replacement value of A$300M to support mining operations and is evident in historic production, which include: • A load out facility and rail loop that is connected to the
Slide 17: License To Operate
For personal use only License To Operate The orders of the Land and Environment Court of NSW in AQC Dartbrook Management v Minster for Planning and Public Spaces (Modification 7 or MOD7) will have a number of implications that will impact cost, capital expenditure and recommencement of production of
Slide 18: JORC Resource and Coal Quality
For personal use only JORC Resource and Coal Quality JORC Resource AQC has had the following technical reports conducted for Dartbrook: Mt Classification1 • Coal Reserve Estimate for Dartbrook Project (2018) Ore Reserves • Mining Consultancy Services (2017), Underground Mine Feasibility Study Proven
Slide 19: Key Risks
Key Risks Specific Risks Operations risks For personal use only (i) The Company may be unable to access the appropriate management, equipment, and capital to fund its business operations. The Dartbrook Coal Project was placed into care and maintenance since 2006 and has not been in operation for ove
Slide 20: Key Risks
For personal use only Key Risks Plant and Equipment risks Prior to the Dartbrook Coal Project recommencing production, there are a number of issues relating to the current infrastructure and plant and equipment that will need to be rectified or remedied to allow production to commence. These include
Slide 21: Key Risks
Key Risks General Risks For personal use only Nature of investment Any potential investor should be aware that subscribing for Offer Shares involves risks. The Offer Shares to be issued pursuant to this Entitlement Offer carry no guarantee with respect to the payment of dividends, return on capital
Slide 22: Foreign Selling Restrictions
For personal use only Foreign Selling Restrictions The Entitlement Offer does not constitute an offer in any jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer and no action has been taken to register the Offer Shares or otherwise permit a public offering o
Slide 23: Foreign Selling Restrictions
For personal use only Foreign Selling Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies 9Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commi
Slide 24: Company Contact Information
Company Contact Information General Enquiries: Head Office: ASX code: AQC For personal use only Craig McPherson Level 1, 371 Queen Street Non-Executive Director & Brisbane QLD 4000 Company Secretary Phone: +61 7 3221 0679 Email: cosec@aqcltd.com Website: www.aqcltd.com 24 Not for release or distribu
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